Real Estate

Why Markham RE is so expensive?

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  • Sep 20th, 2020 10:21 pm
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[OP]
Jr. Member
Jul 16, 2020
130 posts
23 upvotes

Why Markham RE is so expensive?

that's a question everyon knows, but why?
46 replies
Deal Addict
User avatar
Aug 21, 2009
4526 posts
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What? RE is expensive everywhere in the GTA.
Deal Addict
Jan 12, 2017
1050 posts
492 upvotes
Combination of things....

The houses are huge. More house means higher construction costs. It also means you can fit more income generating people in one house. Multiple generations is not uncommon.

Consistency of low neighborhood age. Comparable new builds in Toronto are much more expensive, but neighborhood averages are pulled down by all the old homes. Also, ghetto/neglected homes pull down values - not nearly as common in Markham. The same goes for community amenities, roads, libraries, etc.

Relatively recent construction means that owners/residents paid more for their home (in comparison to Toronto where many residents bought at affordable levels). This means average incomes in Markham are usually higher, crime trends to be lower, schools tend to score better, all which drive higher prices.

Demographics - Markham attracts wealthier foreign buyers, as well as groups that value home ownership.

Foreign ownership - when you're buying sight unseen based on an agent or from pictures, prices tend to be higher.

High vacancy rates - this means city services are being used less, resulting in lower property taxes.

More new builds means a higher benchmark for resale, making high prices still look like deals in comparison.
Onlyuo wrote: that's a question everyon knows, but why?
[OP]
Jr. Member
Jul 16, 2020
130 posts
23 upvotes
Lovable wrote: What? RE is expensive everywhere in the GTA.
ya but markham does not have subway, just a few go train stations and viva runs every 30-45 mins, living in markham needs a car

it promote itself as a tech city or some sort, with york university coming along in a few years (Small campus). Traffic jam,
[OP]
Jr. Member
Jul 16, 2020
130 posts
23 upvotes
Chickennbeans wrote: Combination of things....

The houses are huge. More house means higher construction costs. It also means you can fit more income generating people in one house. Multiple generations is not uncommon.

Consistency of low neighborhood age. Comparable new builds in Toronto are much more expensive, but neighborhood averages are pulled down by all the old homes. Also, ghetto/neglected homes pull down values - not nearly as common in Markham. The same goes for community amenities, roads, libraries, etc.

Relatively recent construction means that owners/residents paid more for their home (in comparison to Toronto where many residents bought at affordable levels). This means average incomes in Markham are usually higher, crime trends to be lower, schools tend to score better, all which drive higher prices.

Demographics - Markham attracts wealthier foreign buyers, as well as groups that value home ownership.

Foreign ownership - when you're buying sight unseen based on an agent or from pictures, prices tend to be higher.

High vacancy rates - this means city services are being used less, resulting in lower property taxes.

More new builds means a higher benchmark for resale, making high prices still look like deals in comparison.
Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
Deal Addict
Jan 12, 2017
1050 posts
492 upvotes
I doubt people will move away from Markham because of the university. The immediate area is medium density/low rise multi. Prices might even increase. Student rooming house are highly profitable.

I wouldn't hold your breath for the Subway. From recent announcements, it's pretty clear that the only way it will happen is if the feds pay for York Region's share of the costs. The only other option is for York Region to take on another $1 to 1.6 billion dollars of debt since they haven't set aside a penny for their share of construction costs. They're already drowning in debt as it is a the result is much higher taxes, whether insanedevelopment charges or property taxes. They basically need $1k from every man, woman and child that lives in York Region to be able to pay for their share of the subway.

Look at values from a long term perspective. Values now are super volatile and don't really reflect inherent value. Areas where prices are somewhat resilient did not take a hit post 2017. Buy in those locations.
Onlyuo wrote: Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
[OP]
Jr. Member
Jul 16, 2020
130 posts
23 upvotes
I understand what you meant.

Will subway ever comes to downtown Markham?
Member
Jul 7, 2019
358 posts
268 upvotes
Onlyuo wrote: Some people dont want to live with students in a condo when yorku markham campus were built. they may move away

Would richmond hill prices higher than markham in a few years? with the subway build and more house coming into completion?

IN terms of convenience , richmond hill would be better with subway (few years from now, planned), go train station, viva.
I thought Richmond Hill prices were already higher.
Deal Addict
Mar 27, 2004
4509 posts
2138 upvotes
Toronto
Onlyuo wrote: ya but markham does not have subway, just a few go train stations and viva runs every 30-45 mins, living in markham needs a car

it promote itself as a tech city or some sort, with york university coming along in a few years (Small campus). Traffic jam,
subway is not the driving factor of prices in every area.

prices are high in oakville also.

the suburbs is built for cars so subway is not relevant.
Full-time Realtor
Deal Addict
Jan 12, 2017
1050 posts
492 upvotes
They changed employment land to residential. All they need now is to get Del Duca in so they can build on protected greenbelt.

negotiater wrote: Markham ran out of land a long time ago.
Member
Mar 2, 2017
314 posts
347 upvotes
Markham
Some of the best public schools in the country, low crime, high household incomes, great municipal/private amenities, low property taxes. The list is long.

Makes it one of the best places to raise a family.
Realtor, Investor, CPA
Deal Addict
Mar 27, 2004
4509 posts
2138 upvotes
Toronto
RichmondCA wrote: Some of the best public schools in the country, low crime, high household incomes, great municipal/private amenities, low property taxes. The list is long.

Makes it one of the best places to raise a family.
thats exactly right

Trudeau. bur oak ss. markham district. Unionville. Middlefield. etc. some of the top hs in Ontario are all in markham.
Full-time Realtor
Member
Mar 2, 2017
314 posts
347 upvotes
Markham
This isn't going to sit well with most, but 407 is also a massive advantage of living in Markham. It caters to upper middle class or those who can afford 407, but being able to get to Pearson in less than 20 minutes in rush hour was awesome for me when I lived that corporate life and had to travel a lot.
Realtor, Investor, CPA
Jr. Member
Dec 12, 2011
121 posts
94 upvotes
Toronto
Yeah I didnt think of that but my best friend is a real estate agent in Markham and he takes nothing but the 407. Anyways, prices are high because almost all of the houses are nice in Markham. Nice, bigger, newer houses on good sized lots. And the most underrated answer as to why prices are high, the Chinese.

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